Of the roughly 150 stores Bed Bath & Beyond plans to close, dozens have already been announced.
Last month, the ailing home goods company announced its intention to close the “lowest producing” shops, which account for around 20% of its name-brand establishments.
The closures are a part of a larger strategy to attempt to balance the business’s finances and reverse its dropping revenues. In order to prepare for the crucial holiday season, Bed Bath obtained more than $500 million in new finance, including a loan, in late August. Its personnel is also decreasing as a result of a 20% reduction in its corporate and supply chain staff.
A list of the 56 namesake sites that Bed Bath & Beyond will shut down was published. They are dispersed all over the United States, from Florida and Ohio to California and Nevada.
Additionally, the shop runs other chains. At the conclusion of the first quarter of the current fiscal year, it had 135 Buybuy Baby stores and 51 locations under the Harmon, Harmon Face Values, or Face Values labels. However, it is expanding its baby items banner. In the three months that ended on May 28th, five Buybuy Baby outlets were opened.
The footprint of Bed Bath & Beyond has already drastically decreased. As the business closed additional locations, it fell by around 35% during the previous two years. At the conclusion of the first quarter of 2020, there were 1,478 stores in total. It had a total of 955 stores as of the same time last year, including 769 Bed Bath & Beyond stores.
The future of Bed Bath & Beyond is in jeopardy. Quarter after quarter, it has reported dropping revenues and spent a lot of money remodelling locations, creating proprietary brands, and repurchasing its own stock. Its same-store sales decreased 26% for the three months ending on August 27 and 23% for the first quarter.
Later this month, the business is expected to release its complete second-quarter earnings.
Bed Bath & Beyond is looking for new management to succeed its acting CEO and CFO. Mark Tritton, a Target veteran hired in 2019 to manage a turnaround effort, and Joe Hartsig, its chief merchandising officer, were fired by the company’s board. Gustavo Arnal, the company’s chief financial officer, committed suicide earlier this month. The chief store officer and chief operating officer positions were eliminated by the corporation.
The company’s stock has decreased by around 38% so far this year. The stock was trading at around $8.90 as of lunchtime on Thursday, up roughly 1.6%.